Unregistered Co purchases from Unregistered & RCM -GST

[Vamsi Krishna]

Dear Sirs

We fall under Exempted category of services being engaged in Agricultural produce. But during our business course we have obtained an opinion from Legal ( Lawyer) which falls under RCM as per GST provisions.

In this case we have are we required to obtain registration to discharge the RCM liability though we are covered under exempted category.

Further if we make purchases from Unregistered persons u/s 9(4), are we required to register and discharge the liability under RCM.

We dont want to go for registration and avail GST credit even.

Can any expert clarify on the above??

Thanks in Advance..

AI Summary

Reverse Charge Mechanism may require registration when receiving non exempt legal services even if buyer claims exemption.
If a recipient's inward supplies are exempt (for example certain agricultural produce), RCM does not arise solely because both supplier and recipient are unregistered; exempt status of the goods negates RCM in that transaction. Legal services, however, are not automatically exempt and must be separately examined: recent government clarification indicates legal services fall within the reverse charge framework in specified circumstances, so registration to discharge RCM depends on whether the particular supply is exempt or expressly covered by reverse charge.